America Movil is teaming-up with Citigroup to roll-out mobile banking service across Latin America. The project starts with Mexico, where the service will allow mobile transactions for as little as 1-2 Mexican pesos (7-15 US cents). The potential is huge – it is thought that approximately three times as many people in Mexico have mobile phones as bank accounts.
At the moment, America Movil has about 236 million connections across Latin America and has an ambitious plan to get 15% of its subscriber base to use the new service.
The best part is that this will be an open service that will allow other banks and operators to join the game as well. What’s more, the two companies are also eyeing governments as potential clients to allow them to more easily pay civil servants’ wages and distribute subsidies to the poor.
So far America Movil has invested $50 million in the joint venture and I guess that’s just a start. We’ll be following this story and get back to you as soon as we hear something new…